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Investment Q&A

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Q: Hi, What will be the new no. of outstanding shares for Savaria, with 5 mln new shares issued and the insider ownership ( Mr Bouroussa and family, with addition of 71,000 committed from new issue) ? Based on 2019 guidance, and taking into account this dilution, what will be the pay out ratio ? Is this dividend 3.5 cents/month sustainable, in your view ? While no one likes a secondary at $14.15 after an issue at $16.60, a year ago, on a positive note, company could pay down a large portion of $101 mln debt, thus strengthening the balance sheet. Is there a silver lining and stock is worth adding at current level for 3% dividend yield and growth ? Also, is there a lock-in period of 4 months for the new shares from April 22, the expected closing date of secondary? Could it place more pressure on the stock, down the road ? Thank You
Read Answer Asked by rajeev on April 03, 2019
Q: I hold SIS and also disappointed, but I did purchase at $5.72 so I will watch for now. PLC announced an offering: Park Lawn Corporation Announces $125 Million Bought Deal Offering and Successful Completion of Cress Funeral Service Acquisition. Stock down 6.75%, is this an opportunity to purchase PCL at a discount?
Thanks
Read Answer Asked by Roy on April 02, 2019
Q: I would like to know if there is any "hanky panky" going on with
SIS and Dejardins. SIS got upgraded by Dejardins from $16 to $17.50 on an earnings miss which made the stock go up over $15. Now Dejardins are the underwriters
of this deal. Also does this type of "you scratch my back and I'll scratch yours"
happen often in the markets?
Read Answer Asked by Herm on April 02, 2019
Q: What are your thoughts on the bought deal private placement of 5M shares? If this was a less common occurrence it would be acceptable but SIS just raised money last year. On both occasions they wait for the share price to get to around $15/$16 and they decide to raise money and drive the share price down. They have set a ceiling on the share price and everytime it gets momentum they send it falling back down to earth. It seems to me that they raise the dividend to drive up the share price only to dilute our shares to get more money. If you need money why raise the dividend 20%, why not keep it the same or slight raise to save money and stop diluting and let the share price go above $16. I've liked mgmt but I'm starting to lose confidence in their decisions around growth. They have just ensured that the share price will fall to $14 tomorrow and stay in that range for months to come. Same as last year. Sorry, frustrated with the recurring dilution. Thanks
Read Answer Asked by Adam on April 02, 2019
Q: Follow-up on my earlier post today relevant to a possible reason for COVALON's 10% jump in stock price: The Zacks report a COV director sent to investors this morning (as an email attachment) is dated: March 18, 2019, and was authored by Brian Marckx, CFA, with Zacks Small Cap Research. While there may be an old Zacks report out there, this one appears to be new.
Read Answer Asked by RANDALL on April 02, 2019